The Department of Finance announced new interest rates for Canada Savings Bonds on Tuesday.

Canada Savings Bond Series 114 that mature in 10 years will carry a 2% annual interest rate for the year beginning Nov. 1, with the rate for the subsequent two years yet to be determined.

Canada Premium Bond Series 64 that mature in 10 years will carry an annual interest rate of 2.35% for 2008. For the year beginning Nov. 1, 2009, the annual interest rate will bump up to 2.5%, and the average annual compound rate of return if the bonds are held until November of the following year will be 2.42%. For 2010, the annual interest rate will be 2.65%, and if the bonds are held until the following November, the annual average compound rate of return will be 2.5%.

The new rates apply to several outstanding CSB and CPB series as well.

Both Series 114 and 64 will be on sale from Oct. 10 to Nov. 1.

Finance also announced that the maturity date of Nov. 1, 2008 on CSB Series 51 (Nov. 1, 1996), CSB Series 54 (Nov. 1, 1998), and CPB Series 3 (Nov. 1, 1998) has been extended to Nov. 1, 2018.